The Sugar Substitutes Market size is estimated to be valued at USD 16.5 billion in 2020 and projected to reach USD 20.6 billion by 2025, recording a CAGR of 4.5% during the forecast period.
The global sugar substitute industry has witnessed growing trends in the past years. The growth of this industry is majorly driven by an increase in health consciousness among consumers to encourage the demand for healthier food choices, an increase in demand for natural sweeteners due to the rise in consumer inclination toward natural products, and growing demand for sugar substitutes in various applications in the food & beverage industry.
The North America region is projected to dominate the sugar substitutes market during the forecast period. The North American region is projected to dominate the global sugar substitutes market due to a variety of key factors, such as the busy lifestyle of consumers, increase in the prevalence of chronic diseases due to hectic lifestyles, and rise in awareness among consumers regarding the health benefits of reduced sugar in food and beverage products.
The US has a large market for confectionery, bakery, packaged, and food convenience food products, due to which it constitutes a major share in the market. Consumers in the US are becoming calorie-conscious, attributed to the increase in health problems in the country. Due to these factors, low-calorie and low-fat food products are becoming popular in the country. The increase in incidences of obesity and cardiac diseases has led to a surge in demand for natural and low-calorie ingredient-based food products among consumers.
The Asia Pacific market is projected to grow at the fastest rate in the global market during the forecast period. The sugar substitutes market in the Asia Pacific region is growing due to the change in the lifestyle of customers and the increase in health consciousness among them. The market in this region is witnessing a drastic transformation regarding diet diversification, rapid urbanization, and liberal trade policies in the food sector.
Furthermore, a rise in consumer awareness about health issues, an increase in inclination of consumers toward health-benefiting food products, and a surge in income and purchasing power are the major factors offering growth opportunities for sugar substitute manufacturers in the market in the region. ‘
The developing countries in the region are India and China due to the increase in urbanization, the rapid rise in household incomes, and the change in lifestyles of consumers in the country. Consumers in India and China have been witnessing a change in their eating habits.
Leading companies are DuPont (US), ADM (US), Tate & Lyle (UK), Ingredion Incorporated (US), Cargill Incorporated (US), Roquette Frères (France), PureCircle Ltd (US), MacAndrews & Forbes Holdings Inc. (US), JK Sucralose Inc. (China), and Ajinomoto Co. Inc. (Japan).
